You have $5,000 you want to invest for the next 45 years.You are offered an investment plan that will pay you 6 percent per year for the next 15 years and 10 percent per year for the last 30 years.How much will you have at the end of the 45 years?
A)$201,516.38
B)$209,092.540
C)$209,092.54
D)-$209,092.54
E)$221,408.97

Question

Quizplus · Accepted Answer

First, we can calculate how much the investment will grow in the first 15 years:
$5,000 * (1 + 0.06)^{15} = $13,261.43
Then, we can take that amount and invest it for the remaining 30 years at 10%:
$13,261.43 * (1 + 0.1)^{30} = $209,092.54

Therefore, the best choice is C, which represents the amount of money we will have at the end of the 45 years.

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